All articles tagged with #overpayments
Starting July 24, over 1 million Social Security beneficiaries will face garnishments, including a 15% rate for those with delinquent student loans, amid recent policy changes under President Trump aimed at reducing fraud and administrative costs. Beneficiaries can explore options to reduce or waive repayment of overpayments.
Starting next month, some Americans will see their Social Security checks reduced by up to 50% as the SSA recovers billions in overpayments made since 2015, due to miscalculations and unreported income changes.
Starting next month, some Americans will see their Social Security checks reduced by up to 50% as the SSA recovers billions in overpayments made since 2015, due to miscalculations and unreported income changes.
Starting next month, some Americans will see their Social Security checks reduced by up to 50% as the SSA recovers billions in overpayments made since 2015, due to miscalculations and unreported income changes.
The Social Security Administration has announced a significant change in its overpayment recovery policy, reducing the amount beneficiaries must pay back. Instead of automatically withholding 100% of overpaid amounts, the agency will now collect 10% or $10, whichever is greater, from recipients' monthly benefits. Exceptions will be made for cases involving fraud. This change aims to make the overpayment policies fair and equitable, addressing concerns about recipients facing financial hardship. Additionally, the agency is reviewing its procedures and policies following criticism and reports of deficiencies in internal controls regarding overpayments.
The Social Security Administration is reforming its policies for recovering overpaid benefits, capping the clawback at 10% of a monthly check and extending repayment plans to 60 months. This comes after previous practices led to financial distress and homelessness for some recipients. The agency will no longer require beneficiaries to prove they aren't at fault for overpayments and will make it easier for them to request a waiver of repayment.
Social Security Commissioner Martin O'Malley has unveiled a new plan to address overpayment issues, including reducing the default withholding rate from 100% to 10% for beneficiaries who do not respond to repayment notices, shifting the burden of proof away from claimants, extending repayment plan timeframes, and making it easier for beneficiaries to request waivers. O'Malley also highlighted plans to address long wait times for service and a backlog in disability benefit applications, calling for additional funding from Congress to address the agency's customer service crisis.
Some Americans receiving Social Security benefits are being asked to repay or have their income suspended due to overpayments linked to COVID-19 stimulus checks. Reports indicate that recipients of Social Security and Supplemental Security Income (SSI) have seen their benefits affected, despite the stimulus payments not supposed to count against their benefits. Concerned lawmakers have sent a letter to the Social Security Administration (SSA) seeking answers and expressing worries about the negative impact on beneficiaries. The SSA has announced plans to review its handling of overpayments and improve the appeals and waiver processes. Additionally, the increasing benefits may push some recipients into higher tax brackets and impact their eligibility for low-income assistance programs.
The head of the Social Security Administration, Kilolo Kijakazi, has ordered a comprehensive review of how the agency deals with overpayments after it was revealed that about 1 million people a year receive notices that they were paid benefits to which they were not entitled. The agency has been criticized for issuing billions of dollars in erroneous payments and then demanding beneficiaries to pay the money back, often years later. Many of those facing clawbacks are poor and disabled individuals. The agency estimates that it overpaid people by $6 billion in the 2021 fiscal year and ended the 2022 fiscal year with $21.6 billion in uncollected overpayments. The review will examine the causes of overpayments, the confusing notices sent to beneficiaries, and ways to make the process more efficient.
Some Senate Republicans are considering reforms to Medicare Advantage to reduce overpayments to insurance companies, which have been collecting billions of dollars in extra profits by over-diagnosing older patients. However, the idea of cracking down on Medicare Advantage overpayments divides Republicans, who have traditionally championed the program. Proponents of Medicare Advantage reform anticipate strong opposition from the insurance industry, one of the most powerful special interest groups in Washington. Sen. Bill Cassidy (La.), the top-ranking Republican on the Senate Health, Education, Labor and Pensions Committee, is leading the push to reduce Medicare overpayments. Cassidy’s proposal, which he introduced with progressive Sen. Jeff Merkley (D-Ore.) on Monday, could draw broader interest from Republicans.